Dominic owns a two-stock portfolio that invests in Falcon Freight Company (FF) and Pheasant Pharmaceuticals (PP). Three-quarters of Dominic's portfolio value consists of FF's shares, and the balance consists of PP's shares. Each stock's expected return for the next year will depend on forecasted market conditions. The expected returns from the stocks in different market conditions are detailed in the following table: Market Condition Falcon Freight Probability of Occurrence 0.25 Pheasant Pharmaceuticals 31.5% Strong 22.5% Normal 0.45 13.5% 18% Weak 0.30 -18% -22.5% Calculate expected returns for the individual stocks in Dominic's portfolio as well as the expected rate of return of the entire portfolio over the three possible market conditions next year. The expected rate of return on Falcon Freight's stock over the next year is The expected rate of return on Pheasant Pharmaceuticals's stock over the next year is The expected rate of return on Dominic's portfolio over the next year is PROBABILITY DENSITY Company Company H -40 -20 0 20 40 60 RATE OF RETURN (Percent) Based on the graph's information, which statement is false? Company H has lower risk. Company G has lower risk